Chapter 1 Internet Marketing Foundations Chapter Objectives Describe
Chapter 1: Internet Marketing Foundations
Chapter Objectives • Describe how computers and servers communicate to enable people to interact with webpages on the internet. • Name three objectives of a website. • Evaluate a website’s performance on its three general objectives and identify specific areas for improvement.
Technical Terms • • • URL (Uniform Resource Locator) Domain name IP address (Internet Protocol) Server Cookie Server-side programming language Client-side programming language Web browser Transport layer security (TLS) Web hosting
Primary Website Objective • Earn money through online sales.
Other Primary Website Objectives • Earn money through advertising • Earn money through commissions • Earn money through subscriptions
Other Primary Website Objectives • Provide information to generate/support offline sales • Support a cause • Provide customer support
Analyzing Success • Consider this scenario: Your friend starts a website, nothingbutflags. com, which is not making money. Your friend asks you to help generate more traffic. What do you advise your friend?
Analyzing Success • Continue the scenario: You ask your friend how much traffic the website had last month. “ 500 visits. ” “How many flags did you sell? ” “ 10, from two purchases. ” What do you advise your friend?
Analyzing Success • Traffic – – – Direct Unpaid referral Paid referral Unpaid search traffic Paid search traffic • Conversion – – – Purchase Lead Engagement Account creation Click-through • Revenue (per conversion)
Analyzing the Success of
Direct Traffic – Amazon
Direct Traffic • Recognizable brand • Easy-to-remember URL • Bookmarked pages • Mobile app
Paid Referral Traffic – Amazon
Paid Referral Traffic • • • Banner ads Text ads Video ads Affiliates Link purchases (not recommended)
Unpaid Referral Traffic – Amazon • Facebook (>24, 000 likes!) • Email • Backlinks – Home page – Product pages
Unpaid Referral Traffic • Email is generally most cost-effective online marketing channel (i. e. highest ROI) • Social media activity targets established customers/fans • Backlinks – SEO efforts – Interesting content required
Search Traffic – Amazon
Search Traffic – Amazon
Search Traffic – Amazon
Search Traffic – Amazon
Search Traffic – Amazon
Search Traffic • Unpaid search traffic comes by being wellranked on commonly searched terms • Alternatively, unpaid search traffic comes with good rankings on a lot of less popular search terms • Paid search allows a company to target driven customers • Expense of paid search varies by keyword
Conversion – Amazon
Conversion – Amazon • Superior search function helps customers find products quickly – Superior to other retail websites (“Results not found”) – Tailored to user (shopping history) – Refined by millions of searches
Conversion – Amazon • Information layout is key to conversion on any site – Provides thorough sense of product with multiple pictures
Conversion – Amazon • Easy-to-navigate purchase process is essential for conversion – Prominent “Ad to Cart” button – 1 -Click® shopping prevents consumers from changing their mind
Conversion – Amazon • Additional information on product gives customers peace of mind
Conversion – Amazon • Technical product information uses same format in all categories – Easy to find, even with glut of information – Additional peace of mind
Conversion – Amazon • Customer reviews are very convincing for most internet shoppers
Conversion – Amazon • Second step of conversion process (following “Add to Cart” click) • “Proceed to Checkout” prominent • Related products displayed to maximize transaction value
Conversion – Amazon • Stored information saves steps (no additional steps for shipping or credit cart information) • Fewer steps = higher conversion rate
Conversion • Most important product information at top (“above the fold”) • Prominent “Add to Cart” button • Easy-to-navigate checkout procedure • User profile enables stored shipping and credit card information (and email messages) • Conversion is higher with fewer steps in the transaction process
Revenue – Amazon • Millions of transactions enable Amazon to make good product recommendations • Add-on products are huge source of profit
Revenue – Amazon • Generally, highly-rated products tend to be more expensive, so providing reviews can increase revenue of each transaction
Revenue • Creating a customer is expensive—increasing a customer’s spending is much easier – Add-on product recommendations – Upgrades – Product reviews
Analyze theonion. com • Traffic • Conversion • Revenue
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